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SIERRA  PACIFIC  ELECTRIC  CO. 
PROSPECTUS 


MNOIOFT 

LIBRARY 


University  of  Calif ornia  •  Berkeley 


NEW  OFFERING  ^  , 


JSIERRA  PACIFIC  ELECTRIC  CO. 

NEVADA  AND  CALIFORNIA 

$1,100,000  SIX  PER  CENT,  CUMULATIVE  PREFERRED  STOCK 

AND 

$550,000  COMMON  STOCK 


In  "Blocks"  of 


10 

5 


Shares  (Par  $100  each)  Preferred  Stock  j  por 
Shares  (Par  $100  each)  Common  Stock  ) 


Dividends  are  being  paid  quarterly  on  the  Preferred  Stock 
February  1,  May  1,  August  1,  November  1 


Sierra  Pacific  Electric  Company  owns  all  the  stocks  of  the  companies  which  do  the  entire  electric 
lighting  and  power  business  in  the  cities  and  towns  of  Reno,  Sparks,  Virginia  City,  Carson  City, 
and  Silver  City,  Nevada,  and  in  the  surrounding  important  mining  and  irrigation  districts  of  West- 
ern Nevada.  These  companies  also  do  the  entire  gas  business  in  Reno,  Sparks,  and  Carson  City, 
and  supply  water  for  domestic  purposes  in  Reno  and  Sparks;  also  a  very  considerable  power  business 
with  mines  and  mills,  including  some  of  those  located  on  the  well-known  Comstock  lode  and 
Yerrington  copper  district. 

IMPORTANT  FEATURES  OF  THIS  OFFERING 

1.  Present  earnings  are  substantially  in  excess  of  preferred  stock  dividend  requirements  and  should 

increase  materially  with  the  development  of  additional  water  powers. 

2.  The  present  developed  water  power  amounts  to  7,300  horse-power,  which  is  insufficient  to  supply 

the  increasing  demand  for  electric  power. 

3.  A  new  plant  of  9,000  horse-power   capacity  will  be  constructed  at  once.     There  is  already  a 

demand  for  a  substantial  amount  of  this  additional  power. 

4  Extensive  lands  and  rights  are  owned,  in  addition  to  those  now  utilized,  which,  together  with 
other  lands  and  rights  that  can  be  acquired,  will  enable  further  development  of  water  power, 
from  time  to  time,  to  meet  increasing  demands.  It  is  estimated  that  ultimate  developments 
aggregating  150,000  horse-power  are  available. 

5-  The  introduction  of  electric  power  at  reasonable  rates  into  a  territory  where  the  cost  of  generating 
power  by  steam  is  very  high,  is  causing  a  steady  increase  in  the  demand  for  the  cheaper  power. 

6.     The  territory  served  and  surrounding  country  are  increasing  steadily  in  population. 
This  Company  is  under  the  management  of  our  organization. 


We  offer  and  recommend  the  above  "blocks,"  and  refer  to  the 
following  pages  for  further  particulars 

STONE   C&   WEBSTER 

147   Milk  Street 

NEW  YORK  BOSTON  CHICAGO 

5  Nassau  Street  604  First  Nat.  Bank  Bldg. 


SIERRA  PACIFIC  ELECTRIC  CO. 


CAPITALIZATION 


STOCK:    (Shares  $100  par). 

Preferred,  6%  cumulative 

Dividends  payable  quarterly,  Feb.  i,  May  i,  Aug.  i,  and  Nov.  i. 
Redeemable  at  115  and  accumulated  dividends.  Preferred  as  to 
dividends  and  in  case  of  liquidation. 

Common 

BONDS: 

No  bonded  indebtedness. 

NOTE. — There  are  authorized  and  outstanding  an  aggregate  of 
$750,000  6  per  cent,  sinking  fund  bonds  of  Subsidiary  Companies, 
which  bonds  are  a  lien  on  only  a  part  of  the  total  properties.  These 
Companies  have  no  further  debt  other  than  current  operating  accounts. 


Authorized 
.      $3,500,000 


8,000,000 


Outstanding 

$3,500,000 


5,000,000 


EARNINGS  AND  EXPENSES 

(Combined  Companies) 

For  the  12  Months  Ending  April  30,  1910 


Gross  Earnings 
Operating  Expenses 

Net  Earnings    . 

Interest  Charges  and  Taxes 

Balance 

Sinking  Fund  . 


Balance 

Dividends  on  $3,500,000  6  per  cent.  Preferred  Stock  require 


$540,499.71 
191,266.16 

$349,233-55 
62,030.99 

$287,202.56 
7,500.00 

$279,702.56 
210,000.00 


It  is  conservatively  estimated  that  earnings  applicable  to  dividends  will  be  increased  by  more 
than  $100,000  by  the  development  of  the  9,000  horse-power  plant  about  to  be  constructed,  A  large 
part  of  the  cash  for  this  development  is  now  in  the  Treasury  of  the  Company. 

Engineers'  reports  on  other  large  water  powers,  for  which  some  of  the  necessary  property  and 
rights  have  already  been  acquired,  show  that  these  powers  can  be  developed  on  a  profitable  basis  as 
the  demand  grows. 


TERRITORY   SERVED   AND    MARKET 

Western  Nevada  has  been  well  known  for  many  years  as  a  copper  and  gold  mining  district.  The 
mining  industry  has  recently  received  an  added  impetus  due  to  the  successful  mining  of  low  grade 
ores  by  the  use  of  electric  power.  The  introduction  of  electrical  energy  has  created  a  demand  for 
power  which  the  local  companies  are  at  present  unable  to  supply  and  is  causing  a  steady  increase  in 
the  number  of  hands  employed  at  the  mines. 

Of  equal  importance  with  the  mining  development  is  the  great  increase  of  irrigation  in  this  dis- 
trict. The  United  States  Reclamation  Service,  through  the  Truckee-Carson  Project,  plans  to  irri- 


Sierra  Pacific  Electric  Co.  and  Subsidiary  Companies 

REPORT  FOR  MONTH  OF 


Gross  Earnings 

Operating  Expenses 

Net  Earnings 

Interest  Charges  and  Taxes 

Balance 

Bond  Sinking  Fund 

Balance 


Oct.,  1910.  Oct.  1909. 

$49,206.49  $45,283.07 

13,844.88  18.930.24 

$35,361.61  $26,352.83 

5,394.90  5.081.88 

$29,966.71  $21,270.95 

625.00  625.00 

$29,341.71  $20,645.95 

REPORT  FOR  12  MONTHS  ENDING 


Gross  Earnings 

Operating  Expenses 

Xet  Earnings 

Interest  Charges  and  Taxes 

Balance 

Bond  Sinking  Fund 

Balance 


Oct.  31,  1910. 
$556,520.93 
188,017.85 

Oct.  31,  1909. 

$519,405.72 
194,025.61 

$368.503.08 
62,150.08 

$325,380.11 
63,540.03 

$306,353.00 
7,500.00 
$298,853.00 

$261,840.08 
7,500.00 
$254,340.08 

Increase. 

$3,923.42 

5,085.36* 

$9,008,78 

313.02 

$8,695.76 

$8,695.76 


Increase. 
$37,115.21 

.6,007.76* 
$43  J  22.97 
1.389.95* 
$44,512.92 


CONSOLIDATED  STATEMENT  OF  FINANCIAL  CONDITION 


*Decrease. 


October  31,   1910. 


ASSETS 
Property  of 

Constituent   Companies 
Materials  and  Supplies 
Advance    Payments 
Bills    Receivable 
Sinking  Fund   Investments 
Suspense 
Cash 


LIABILITIES 


$12,951,281.01 

26,118.13 

2,929.56 

132,365.58 

61,903.51 

6,595.13 

449,684.02 


$13,630,876.94 


Common  Stock 
Preferred  Stock 
Outstanding  Stock 

Subsidiary  Company 
Bonds — Reno  Power, 

Light  and  Water  Co. 
Bills   Payable 
Bills   Not  Yet   Due 
Suspense 

Bond  Sinking  Fund 
Replacement   Reserve 
Reserves  and  Surplus 


$8,000,000.00 
3,500,000.00 

5,500.00 

750,000.00 

24,266.19 

74,638.97 

47,891.20 

61,903.51 

38,000.00 

1,128,677.07 

$13,630,876.94 


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gate  over  200,000  acres  of  land,  about  forty  miles  from  Reno,  of  which  32,000  acres  were  irrigated  in 
1909.  This  Project,  together  with  the  mining  developments  referred  to  above,  should  cause  a  still  further 
growth  in  the  City  of  Reno,  already  the  largest  city  in  Nevada  and  the  natural  commercial  centre. 
Reno,  situated  on  the  main  east  and  west  line  of  the  Southern  Pacific  Railway,  with  other  roads  running 
north  and  south,  enjoys  railroad  facilities  far  superior  to  those  of  any  other  city  in  the  State. 

At  Sparks,  about  three  miles  east  of  Reno,  the  Southern  Pacific  Railway  shops,  recently  es- 
tablished, have  been  the  cause  of  a  very  substantial  increase  in  population. 

The  total  population  served  by  the  Company  is  estimated  at  32,000. 

The  lighting  and  power  business  in  this  growing  territory  will,  it  is  expected,  justify  the  develop- 
ment in  the  near  future  of  some  of  the  large  powers  now  partially  controlled. 


PROPERTY   AND    FRANCHISES 

The  local  companies  at  the  present  time  own  and  operate  four  hydro-electric  plants  located  at 
different  points  on  the  Truckee  River,  having  a  combined  capacity  of  7,300  horse-power.  135  miles  of 
high  tension  lines  are  now  used  in  transmitting  the  power,  and,  in  addition,  complete  distributing 
systems  are  installed  in  communities  served. 

The  gas  and  water  plants  at  Reno  and  the  gas  plant  at  Carson  City  are  of  sufficient  capacity  to 
take  care  of  substantial  increases  in  business. 

The  franchises  of  the  local  companies  are  adequate  and  either  have  no  time  limitation  or  run  for 
25,  50  or  gg-year  periods. 

The  local  companies  own  in  fee  the  lands  on  which  are  located  the  various  plants  now  in  opera- 
tion and  the  water  rights  connected  therewith;  also  certain  private  rights-of-way  for  transmission 
lines,  flumes,  etc.,  necessary  for  their  business. 

In  addition  to  the  present  substantial  going  business  the  local  companies  also  own  certain  lands 
for  reservoir  purposes  on  the  east  and  west  slopes  of  the  Sierra  Nevada  Mountains  which,  together 
with  the  rights  already  owned  and  in  use,  are  of  great  value  in  connection  with  the  future  develop- 
ment of  water  powers  aggregating  about  150,000  horse-power. 


LEGALITY 

The  legal  matters  pertaining  to  the  organization  of  the  Sierra  Pacific  Electric  Company  and  the 
issuance  of  its  securities  have  been  examined  and  approved  by  Messrs.  Gaston,  Snow  &  Saltonstall, 
Attorneys,  Boston,  Mass. 

STONE  C&  WEBSTER 

147  Milk  Street 

NEW  YORK  BOSTON  CHICAGO 

5  Nassau  Street  First  National  Bank  Bldg. 


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